Efficiency of Microfinance Institutions and Financial Inclusion in West Bengal: A DEA Approach

Tarak Nath Sahu (), Sudarshan Maity Cma () and Srimoyee Datta ()
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Tarak Nath Sahu: Vidyasagar University
Sudarshan Maity Cma: The Institute of Cost Accountants of India
Srimoyee Datta: Sidho Kanho Birsha University

Chapter Chapter 7 in Microfinance to Combat Global Recession and Social Exclusion, 2022, pp 97-111 from Springer

Abstract: Abstract For achieving long-term sustainability of economic growth, bringing in the benefits of growth to all sections of the society is critical. Microfinancing by microfinance institutions (MFIs) hitherto remains a powerful tool for development and it has bought many changes in the lives of many poor people. In this study, an attempt has been made to measure efficiency of MFIs operating in West Bengal for 2016–17 to 2018–19 through Data Envelopment Analysis. As evident from Shapiro Wilk test the study shows, efficiency scores follow a normal distribution. Further, Friedman test reveals a significant difference in efficiency scores during the study period. To get more specific result Wilcoxon signed-rank test is used. The study reveals that all the nine inefficient MFIs have the scope of producing 1.17 times to 4.32 times with the same level of input. To overcome the present recession situation there may be a requirement in an increase of investment and aggregate demand of consumer spending by escalating efficiency of MFIs.

Keywords: Microfinance institution; Benchmarking; Overall technical efficiency; Data envelopment analysis (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-4329-3_7

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DOI: 10.1007/978-981-16-4329-3_7

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